Aaron Summers

4 Reasons Why Raising the Minimum Wage Will Not Fix the Problem

In Life and Culture, Money on February 14, 2014 at 7:00 am

minimum-wage1

This week President Obama raised the minimum wage of federal contractors to $10.10 and is urging Congress to pass broader legislation that applies to all workers.  I believe people should be paid a living wage for the work done.  James 5:4 says, “Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, are crying out against you, and the cries of the harvesters have reached the ears of the Lord of hosts.”  However, raising the minimum wage will not fix our problem and here is why.

  1. Bankrupt small business owners.  A mandated 28% raise will be more than many business owners will be able to handle.  They will try.  They will fail.  Most small business owners I know are not making truckloads of money.  There is only so much to go around.
  2. Raise poverty.  This rise in minimum wage will result in higher costs at the check-out lines.  Business owners will recover their loss by passing it on to the consumer.  Those who will make higher wages will then see higher prices and thus not really be making any more money.  It will not take long for the poverty line to rise seeing more Americans being taken care of by the government, which in turn will breakdown.
  3. Raise unemployment.  A major factor in the failure of this plan is that owners will trim their overhead in order to comply with the new wage structure.  The business that supported 5 families will now only support 2 or 3.  The others will find themselves seeking unemployment dollars.
  4. Shameless ploy of Democrats striving for Presidential election in 2016.  According to this report, 45% of Americans are considered low-income.  Even with this rise in minimum wage a family of 4 (whether single with 3 kids or married with 2) would still fall into this category.  However, politics ignores all the above reasons and focuses in on numbers of votes.  If spun properly, more will vote for the ones who put money in their pockets.

If we are going to make a dent in the economic issues, we must take a critical look at some of the untouchable items.

  1. Unions.  There was a time when the American worker needed protection.  However, it seems that we have skewed wages to the point that the American product costs more than ever and our dollar is worth less than ever.  Unions need to be dismantled.
  2. Healthcare reform is required.  Let us be honest, the affordable care act is not truly affordable since most cannot even sign up for it.  Additionally, with such high subsidies being offered to show lower payments to the consumer, our economy will soon crumble.  The reform we need is lower cost across the board.
  3. Fuel costs.  We must become independent.  Build the pipeline.  Drill in Alaska.  With the ability to horizontally drill, it should be possible to retrieve the necessary oil without adversely affecting the migration of the caribou or causing cultural genocide.

Israel experienced a problem with governmental irresponsibility.

Then the young men who had grown up with him told him, “This is what you should say to these people who said to you, ‘Your father made our yoke heavy, but you, make it lighter on us! ’ This is what you should tell them: ‘My little finger is thicker than my father’s loins!  Although my father burdened you with a heavy yoke, I will add to your yoke; my father disciplined you with whips, but I will discipline you with barbed whips.’ ”

They soon ended up in a revolution and split kingdom.  I fear that if real changes are not made our country will soon face the same fate.  Now it is time to pray!

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